The trend of BTC prices gives analysts reason to be bearish, while Bitcoin avoids fluctuations in macro triggers on the day.Bitcoin inAfter providing a retest of recent lows, the overnight decline returned to above $26000 on May 25th
The trend of BTC prices gives analysts reason to be bearish, while Bitcoin avoids fluctuations in macro triggers on the day.
Bitcoin inAfter providing a retest of recent lows, the overnight decline returned to above $26000 on May 25th.
BTC/USD1 hourly candle chart on Bitstamp Source: TradeView
BTC price trend revolves around the key 200 week moving average
According to data from CointelegraphMarketsPro and TradeView, BTC/USD has been operating within its range since the previous day and has recovered from a lightning weak streak after the daily candle close.
Due to the lack of excitement in the spot market, traders and analysts are searching for potential volatility catalysts.
The macroeconomic report from the United States on that day, including estimates of the second quarter's gross domestic product and the number of people applying for unemployment benefits, failed to change the current situation.
Short positions failed to push prices down because we retested the support area from below, "popular trader Jelle concluded in a section of the Twitter update that day.
He added that recovering $26600 would be an "ideal scenario", which would serve as a springboard for BTC/USD to recover its previous range.
If Bitcoin's "nuclear bomb" drops, trader CryptoTony reiterated a popular downward target of around $25000.
Trader Skew analyzed the brief journey below the $26000 level and attributed the blame to the sweeping designed by Binance traders.
This is your commonly used binary equivalent engineering pump& rug, "he replied.
Now Perps' liquidity has been captured and tested for a spot limit order of $26000
He then explained that due to the transaction of limit price buying and the improvement in order book liquidity, prices have increased.
Overview of Coin An Order Book Data Source: Tilt/Twitter
The bearish outcome "slow but certain" has become a reality
At the same time, within the weekly timeframe, traders and analysts RektCapital emphasized the importance of the current level of spot prices.
He pointed out that the position slightly above $26000 is the 200 week moving average, and if it falls below and returns to resistance, it will bring long-term difficulties to bulls.
Further analysis warns that Bitcoin's several month high of $31000 since April is actually rapidly turning bearish, forming a head and shoulder pattern.
So far, BTC has fallen from head to shoulder. BTC has recently flipped the neckline of this pattern to a new resistance level (red box), "he commented next to the explanatory chart.
Slowly but surely, this bearish pattern is self validating, which may mean deeper downside space entering a low of $20000
BTC/USD Annotation Chart Source: RektCapital/Twitter
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